IGNOU BRL 104 2026 - How can marginal analysis and cost benefit analysis serve as

Question

How can marginal analysis and cost benefit analysis serve as tools for evaluating alternatives?

20 Apr 2026

Answer :

Word Count : 559

Marginal analysis and cost benefit analysis are important decision-making tools used in retail management and communication for evaluating alternatives. They help managers compare different choices, allocate resources efficiently, and select the most profitable or beneficial course of action. In a competitive retail environment, decisions regarding pricing, promotion, inventory, staffing, store expansion, and communication strategies require careful economic evaluation. These analytical tools reduce uncertainty and improve rational decision making. Marginal analysis is the process of examining the additional benefits and additional costs associated with a particular decision. It focuses on the effect of small changes rather than total outcomes. In business, many decisions involve whether to increase or decrease an activity by one

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